Jeffrey Paul Lyons, II: Motion for Relief from the Automatic Stay — Vyaire Medical, Inc., et al. (Bankruptcy Court, District of Delaware)

Summary

Proposed order granting Jeffrey Paul Lyons, II’s motion for relief from the automatic stay, filed October 1, 2024 as Doc 589-2 in In re Vyaire Medical, Inc., et al., Case No. 24-11217 (BLS), U.S. Bankruptcy Court for the District of Delaware. It would lift the stay so Lyons may pursue claims in a non-bankruptcy court, including his case against Vyaire Medical, Inc. in the State Court of Gwinnett County, Georgia (Case No. 22-C-07343-S5), arising from an incident involving a minor child and an LTV 1150 ventilator on or about January 1, 2021. He could enforce those claims only against third-party non-debtors, including the debtors’ insurance carriers, which could pay any judgment, award or settlement from the debtors’ policies. The stay would otherwise remain in full effect. The filed text is the form of order submitted with the motion and carries no judge’s signature.

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Full text

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

In re

VYAIRE MEDICAL, INC., et al.,1

Debtors.

Chapter 11

Case Nos. 24-11217 (BLS), et seq.

(Jointly Administered)

Re: Docket No(s).

ORDER GRANTING
JEFFREY PAUL LYONS, II’S MOTION FOR RELIEF FROM THE
AUTOMATIC STAY TO PURSUE NON-BANKRUPTCY LITIGATION

UPON CONSIDERATION of the Motion for Relief From The Automatic Stay
(the “Motion”) filed by Jeffrey Paul Lyons, II (“Movant”), and any response thereto;
the Court having determined that (A) the Court has jurisdiction over the Motion
pursuant to 28 U.S.C. §§ 1334 and 157; (B) this is a core proceeding pursuant to 28
U.S.C. § 157; (C) venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409; and (D)
service to the limited parties stated on the Certificate of Service is adequate under the
circumstances; and the Court having further determined that cause exists to grant the
relief requested in the Motion; it is hereby ORDERED as follows:

1 The last four digits of Debtor Vyaire Medical, Inc.’s federal tax identification number are 6495. A
complete list of each of the Debtors in these chapter 11 cases and each such Debtor’s federal tax
identification number may be obtained on the website of the Debtors’ claims and noticing agent at
https://omniagentsolutions.com/Vyaire. The location of Debtor Vyaire Medical, Inc.’s principal
place of business and the Debtors’ service address in these chapter 11 cases is 26125 North
Riverwoods Boulevard, Mettawa, Illinois, USA 60045.
Case 24-11217-BLS    Doc 589-2    Filed 10/01/24    Page 1 of 3

-2-
1.
The Motion is GRANTED, as set forth herein. All capitalized terms not
otherwise defined herein shall have the respective meanings set forth in the Motion.
2.
The automatic stay set forth in 11 U.S.C. § 362(a) is hereby lifted and
modified to permit Movant to commence and prosecute, in a non-bankruptcy court of
competent jurisdiction—including but not limited to the State Court of Gwinnett
County, State of Georgia (the “State Court”) in the case styled as Jeffrey Paul Lyons,
II v. Vyaire Medical, Inc., Case No. 22-C-07343-S5 (the “State Court Case”)—any
claims and causes of action arising from a certain incident occurring on or about
January 1, 2021 involving minor child J.R.B. and an LTV 1150 ventilator (the
“Incident”); provided that Movant shall enforce such claims only against third-party
non-debtors, including but not limited to the Debtors’ applicable insurance carriers
and third parties and their insurance carriers. Without limiting the foregoing, any
insurance carrier is authorized to pay any judgment, award or settlement from the
Debtors’ applicable insurance policies and any proceeds thereof. Except as otherwise
set forth herein, the automatic stay pursuant to § 362 of the Bankruptcy Code shall
otherwise remain in full effect.
3.
Nothing in this order shall limit or affect Movant’s rights or claims  and
to receive any distribution available to similarly situated creditors in these bankruptcy
cases to the extent applicable under the Bankruptcy Code and Rules.
Case 24-11217-BLS    Doc 589-2    Filed 10/01/24    Page 2 of 3

-3-
4.
Movant represents and warrants that Movant has not sold, assigned,
pledged, or otherwise transferred any claims that they might have against the Debtors
and their estates.
5.
No stay of this Order shall be in effect, including but not limited to any
stay contemplated under Fed.R.Bankr.P. 4001(a)(3).
6.
The Court retains jurisdiction to interpret and enforce the terms of this
order.

Case 24-11217-BLS    Doc 589-2    Filed 10/01/24    Page 3 of 3

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